AnalystConsensusTarget updated the narrative for NVST

Analysts have raised their price target for Envista Holdings from $21.42 to $22.00 per share. They cite increased profit margin estimates, an improved revenue growth outlook, and a slightly higher fair value driven by recent performance and updated FY25 guidance.

Analyst Commentary

Recent research notes following Envista Holdings' third quarter results and FY25 outlook reflect a mix of optimism and caution among analysts regarding the company’s trajectory and valuation.

• Bullish analysts highlight Envista’s ability to deliver core growth, adjusted EBITDA, and adjusted EPS ahead of expectations, signaling strong operational execution.
• The company’s positive momentum across all major businesses is seen as a driver for sustained revenue growth and market share expansion, particularly in the Spark aligners segment.
• Improving profitability, especially the move to profitability in key business lines, is viewed as a constructive factor that could support upward revisions in future fair value estimates.
• Analysts point out that narrowing the sales and EPS ranges for FY25 reflects management’s increased confidence in delivering on guidance, which reduces uncertainty for investors.

• Bearish analysts note that third quarter revenue of $670 million fell short of consensus expectations, which may signal near-term challenges in maintaining growth targets.
• The slight narrowing of the projected FY25 sales growth to approximately 4 percent, compared to the previous 3 to 4 percent range, is seen as a modest improvement but still reflects cautious underlying assumptions.
• Flat or only marginally improved EPS guidance, despite operational gains, raises concerns about the company’s ability to drive material upside for shareholders in the near term.

What's in the News

• Envista reported third quarter EPS of 32 cents, slightly below consensus of 33 cents, with revenue of $670 million versus expectations of $682.9 million (Periodical).
• Core growth, adjusted EBITDA, and adjusted EPS came in ahead of expectations for the quarter, driven by positive momentum across all major businesses and profitability in the Spark aligners segment (Periodical).
• The company narrowed its FY25 EPS guidance to a range of $1.10 to $1.15 from a prior range of $1.05 to $1.15, with consensus at $1.11 (Periodical).
• Full-year 2025 core revenue growth guidance was updated to approximately 4%, up from a previous range of 3% to 4% (Key Development).
• Envista completed the repurchase of nearly 8 million shares, totaling $141.45 million under its ongoing buyback program (Key Development).

Valuation Changes

• Fair Value Estimate has risen modestly from $21.42 to $22.00 per share, reflecting updated outlooks.
• Discount Rate increased fractionally from 8.50% to 8.51%, indicating a marginal uptick in perceived risk.
• Revenue Growth projections have improved, moving from 3.59% to 4.06% annually.
• Net Profit Margin estimate increased substantially from 5.10% to 7.55%, signaling stronger profitability expectations.
• Future P/E Ratio has fallen significantly from 28.16x to 18.03x. This suggests either improved earnings outlook or a lower expected valuation multiple.